Selling Points | Real Estate Weekly

May 1st, 2013, by REW Staff

● Besen & Associates
Shelter fetches $23M

Besen & Associates announce the sale of 2520 Tilden Avenue in Flatbush, Brooklyn.

The property, known as Tilden Hall, is a nine-story elevator building comprised of 117 units, consisting of 86,000 s/f. The building is currently used as a transitional housing facility. The transaction was completed by Greg Corbin and Amit Doshi of Besen & Associates.

The property was sold for $22,900,000, which equates to a value of $195,726 per unit, $266 price per square foot, a capitalization rate of 9.8% and a Gross Rent Multiplier of 9.9.

Highland Park Development leases the property, which signs bi-yearly service agreements with the city and its Department of Homeless Services to provide transitional housing, counseling and rehabilitation programs for families in need.

This made the transaction more complex than your average multifamily deal, but for the buyer, United Realty Trust, it was a much more promising deal, according to the brokers.

“The due diligence was more complex than you standard multifamily transaction,” said Corbin, “United Realty [Trust] acquired great bricks with an outstanding cap rate.”

Newly constructed in 2004, Tilden Hall has a community room, children’s classroom and playroom, outdoor park, indoor parking, and office space for over 20 employees.

New York City’s Department of Homeless Services labeled Tilden Hall as one of its top facilities.

● kayne anderson re advisors
Investment switch for firm

Naperville, Ill.-based The Marquette Companies announced it broke ground this month on Catalyst, a 22-story luxury rental building located at 630 W. Washington in Chicago’s West Loop.

The development is a joint venture with El Paso, Texas-based Hunt Cos. and New York-based Kayne Anderson Real Estate Advisors, the real estate private equity arm of Kayne Anderson Capital Advisors, L.P.

Catalyst will include 223 apartment homes and high-end amenities.

The street level will house a 13,000 s/f Walgreens. The building will also include 175 parking spaces.

“With our proven track record of high-tier properties with world-class amenities in the student housing space, the Catalyst development, while not student oriented, is on par with the quality of property and opportunistic characteristics Kayne Anderson seeks out in a valuable investment,” said S. David Selznick, chief investment officer of Kayne Anderson Real Estate Advisors.

“We are pleased to partner with The Marquette Companies on the development and are confident that this investment will be a strong addition to our existing roster of properties.”

Simon says, ‘Let’s renovate’

HFF has closed the sale of 166 West 75th Street, a 207-unit multi-housing property with 3,425 s/f of ground floor retail on Manhattan’s Upper West Side.

HFF marketed the property exclusively on behalf of the seller.

166 West 75th Street is located near the intersection of Amsterdam Avenue and 75th Street close to Central Park, Riverside Park, Lincoln Center, and the 72nd Street Subway Station.

The property is 16 stories and includes market-rate, rent-stabilized, SRO and vacant units.

Simon Development Group purchased the asset and intends to renovate the property.

The HFF team representing the seller was led by managing director Jeff Julien, director KC Patel, senior managing directors Andrew Scandalios and Jose Cruz and managing director Kevin O’Hearn. “We are excited to add 166 West 75th to our portfolio,” said Matthew Baron, principal of Simon Development Group. “This was a value-add multi-housing opportunity in an outstanding location and garnered substantial interest,” added Julien.

● eastern consolidated
Financial upside a big draw

New to the market in Upper Manhattan’s gentrifying Fort George/Fort Tryon neighborhood is a seven-story 103-unit, post-war, 95% occupied elevator residential apartment building priced at $16.75 million

Eastern Consolidated’s R. Stuart Gross, executive managing director, with Max Bryce, associate, and Scott Ellard, director financial services, are promoting the sale of 1 Bogardus Place, an income-producing property comprised of units ranging from 589-square-foot studios to 1,405-square-foot three bedrooms.

According to Gross, ‘Since only 23% of the units have been renovated, the new owner would benefit from future financial upside by renovating the remaining units as leases roll over and tenants vacate.”

1 Bogardus Place is situated in the quiet residential enclave of Fort George in Upper Manhattan.

The neighborhood is well-served by public transportation and also a short walking distance to some of the area’s most valuable treasures in Fort Tryon/The Cloisters medieval museum and gardens, Inwood Hill Park and the Hudson River Greenway that runs from Fort George Park south to Fort Washington Park.

“Demand for housing continues to grow in Manhattan and 1 Bogardus Place offers attractive attributes and fundamentals,” said Gross.

“The property could serve as an excellent 1031 exchange candidate or remain a long-term investment, since it is positioned to perform well throughout all phases of the real estate cycle.”

● cbre
Farm fetches $17M

Jeffrey Dunne, Steven Bardsley and Patrick Carino of CBRE’s New York Institutional Group represented ownership in the sale of Lee Farm Corporate Park for $16.9 million.

The team was also responsible for procuring the buyer, Lee Farm Partners, LLC, a joint venture between Summit Development and The Grossman Companies. This is the first acquisition for The Grossman Companies in Fairfield County.
Lee Farm is a 216,000 s/f office building located at the junction of Interstate 84 and Route 7, and is opposite the 1.3 million Danbury Fair Mall, Danbury Airport and the newly developed Whole Foods, scheduled to open this spring.
Major tenants at Lee Farm include GE Capital, IMS Health and PepsiCo.

Jeff Dunne commented, “Lee Farm provides Summit and The Grossman Companies with an ideal property to capture tenants from Southern Fairfield and Westchester counties.

Summit’s local operating experience should prove invaluable in the lease up of the available space at Lee Farm.”


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